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The Wall Street Journal is reporting here that venture backed deals in energy efficiency have cooled since 2009. Not to be confused with the renewable energy industry like solar or wind, the energy efficiency industry deals mostly with improving the efficiency of traditional utilities, most notably the electric grid. One reason for this drop in energy efficiency investment is the emergence of companies providing renewable energy as an alternative energy source. Despite this decrease, the WSJ does mention that a healthy percentage of energy efficiency deals are in the seed and first stage, so the level of investment should improve as these early-stage startups mature.

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